E-Learning Investments Evaluation : A Multicriteria Model

E-learning markets have been expanding very rapidly. As a result, the involved senior managers are increasingly being confronted with the need to make significant investment decisions related to the e-learning business activities. The valuation of e-learning business activities is a challenging task since it is characterized by rapidly changing business and technology conditions. In this paper, we apply ROs (Real Options) to the e-learning investments evaluation. Given the investment's requirements, assumptions and risks, the goal is to maximize the investment's value by identifying a good way to structure it using carefully chosen ROs. However, ROs models are based on quantitative analysis and the required input parameters sometimes are difficult to be estimated for evaluating real life investment opportunities. In addition, e-learning investments experience tangible and intangible factors and the latter can be mainly treated by qualitative analysis. For this reason, we integrate ROs thinking and Analytic Hierarchy Process (AHP) to take into account financial tangible, intangible and risk factors providing a decision analysis framework. The proposed framework provides a better understanding of projects risks and various intangible factors inherent in e-learning projects enabling these projects to be deployed more optimum and valued with higher accuracy. Finally, we apply the proposed model in an e-learning case study showing how it can be formulated and solved